I think people underestimate the systemic restrictions placed on the Indian Middle Class, and fail to realise the connection to a larger problem India faces, viz. drastic shortage.
You want to become a doctor? Too bad you don't have an MBBS. We don't care whether you decided to become one only during college, and are willing to spend a few extra years catching up.
Except for diplomas (by which I mean qualifications like CA, which you theoretically could get without attending classes at a college) doesn't place a prerequisite on having a degree. Every master's program I have come across requires a bachelor's degree. Some are more flexible, admitting degrees outside the relevant fields. But most are not.
The reason is pretty simple : In a country like India where anything good suffers a big shortage, people generally prefer to stick to rules, creating many false negatives. This is because no one wants to take up liability in case a false negative crops up. "I followed all the regulations and suggestions," they say.
So anything that involves an expected, and common path ends up needing college degrees as prerequisites. For the Middle Class which cannot afford to wait out a few years, they have no choice but to toe the line. Only if you have any capital (and in India, connections) to begin with, can you expect to change the system. (The author here is a businessman in the crudest sense : not a very conventional career path in a lot of families).
My parents generation mostly got their jobs before the liberalisation of the economy in 1991. In those days, a lot of people dreamed of government jobs : stable, decent paying, and allows you to slack off. In spite of globalisation, we cannot expect their mindset to change a lot after they've fought so badly for jobs, right? This old mindset comes into play when they suggest us to go to college : they've seen decades of public sector employment, this new path (entrepreneurship) seems new, and they honestly believe they are trying to help you. There is no ill-will here.
I do agree one can still earn a good living without college in India too. But I feel what I said has a considerable effect in societal status of middle class people (most of whom are not extraordinary), and this in turn makes people want the college degree.